Featured Product

    ISDA Summarizes Results of Consultation on Benchmark Fallbacks

    August 09, 2019

    ISDA published a statement summarizing the preliminary results of a consultation on pre-cessation issues for LIBOR and certain other interbank offered rates (IBORs). The consultation on pre-cessation issues, which was launched in May, sought comments on how derivatives contracts should address a regulatory announcement that LIBOR or certain other IBORs categorized as critical benchmarks under the EU Benchmarks Regulation are no longer representative of an underlying market. Additionally, ISDA announced that Bloomberg Index Services Limited (BISL) has been selected to calculate and publish adjustments related to fallbacks that ISDA intends to implement for certain interest rate benchmarks in its 2006 ISDA Definitions.

    ISDA received responses from 89 entities to the consultation from a variety of market participants including banks and broker-dealers, insurance companies, asset managers, government or federal entities, and central counterparties (CCPs). Respondents expressed a wide variety of views on whether and how to implement a pre-cessation trigger related to “non-representativeness” for derivatives. Respondents also expressed a number of issues for consideration related to the potential pre-cessation trigger and how to implement such a trigger.

    In September 2019, ISDA hopes to publish an aggregated summary of the feedback received. ISDA also hopes to consult on a proposed documentation solution for derivatives to allow for efficient incorporation of a pre-cessation fallback trigger in a manner that attempts to account for, and mitigate against, the concerns expressed by respondents to the recent consultation (to the extent such concerns can be addressed by documentation for derivatives). The consultation period for the proposed solution of ISDA will allow market participants to indicate whether the proposal addresses their concerns and to raise any additional concerns they may have. Meanwhile, ISDA will continue to work with market participants and regulators to determine how best to address concerns regarding “non-representative” benchmarks and implementation of pre-cessation fallbacks for derivatives. ISDA will continue to seek advice from its independent advisors and feedback from government and regulatory agencies.

     

    Related Links

    Keywords: International, Banking, Securities, IBOR, Interest Rate Benchmarks, Risk-Free Rates, LIBOR, BISL, ISDA

    Related Articles
    News

    APRA Consults to Standardize Submission Date for Quarterly Reporting

    APRA proposed to standardize quarterly reporting due dates for authorized deposit-taking institutions. The proposed standardized due date is 35 calendar days after the last day of the reference quarter, which will create a 14-calendar-day extension for credit unions and building societies.

    November 08, 2019 WebPage Regulatory News
    News

    EBA Publishes Methodology and Draft Templates for Stress Tests in 2020

    EBA published a package for the 2020 EU-wide stress test exercise for banks.

    November 07, 2019 WebPage Regulatory News
    News

    FSB Publishes Summary of Plenary Meeting in Paris

    At the meeting, the Plenary reviewed vulnerabilities in the global financial system, fintech developments (including developments in the crypto-asset markets), ongoing work of FSB, and the work program for 2020.

    November 07, 2019 WebPage Regulatory News
    News

    EC Publishes Results of Fitness Check of Reporting Requirements in EU

    EC published results of the fitness check of supervisory reporting requirements in financial services legislation in EU.

    November 07, 2019 WebPage Regulatory News
    News

    BCBS Assesses NSFR and LE Rules in Argentina and China as Compliant

    BCBS published reports that assess the implementation of net stable funding ratio (NSFR) and large exposures, or LE, framework in Argentina and China.

    November 07, 2019 WebPage Regulatory News
    News

    HKMA Highlights Technology Initiatives at the Hong Kong FinTech Week

    HKMA co-organized, with InvestHK, the Hong Kong FinTech Week 2019, which was a five-day flagship fintech event that attracted thousands of attendees worldwide.

    November 06, 2019 WebPage Regulatory News
    News

    ECB Report on Fallback Provisions in Contracts Referencing EURIBOR

    ECB published a report, by private sector working group on euro risk-free rates, presenting recommendations for fallback provisions in contracts for cash products and derivative transactions referencing EURIBOR.

    November 06, 2019 WebPage Regulatory News
    News

    EC Regulation on Homogeneity of Underlying Exposures in Securitization

    EC published the Delegated Regulation 2019/1851 regarding the regulatory technical standards on the homogeneity of the underlying exposures in securitization.

    November 06, 2019 WebPage Regulatory News
    News

    FSI Examines Regulatory Approaches on Climate Risk Assessment

    The Financial Stability Institute (FSI) of BIS published a paper that examines the regulatory approaches being used for climate risk assessment in the insurance sector, in particular through enterprise risk management (ERM) frameworks.

    November 06, 2019 WebPage Regulatory News
    News

    SRB Launches Q&A Process for Resolution Reporting

    SRB has setup a dedicated solution for raising questions on the resolution reporting.

    November 06, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4112